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Business · 2026 midterm elections

California voters reject one-time 5% billionaire tax after costly campaign

The AP called the race on Monday, and the sponsoring union says it will seek a billionaire tax again in 2028 if healthcare problems are not addressed.

32 news outlets reported this
Liberal17 outletsBillionaire money, split Democrats, and what defeat means nationallyCenter7 outletsA long, expensive fight ends in rejectionConservative8 outletsA setback for the progressive wealth-tax push
ABRAnews EditorialPublished 1 min readMoney and daily life
Overview

California voters rejected , a one-time 5% tax on the net worth of billionaires living in the state. The Associated Press called the race on Monday, with 52.8% voting against and 47.2% in favor, according to the New York Post and Just the News. The healthcare union SEIU-United Healthcare Workers West sponsored the measure.

Most of the money would have gone to healthcare to offset federal funding cuts, with the rest for education and food assistance. Backers estimated it would raise about $100 billion. Opponents far outspent supporters, and Google co-founder Sergey Brin was the biggest donor to the committee fighting the tax.

Two other measures on the ballot, Propositions 41 and 42, could have blocked the tax even if it passed. Gov. Gavin Newsom, a Democrat, opposed the tax. Sen. Bernie Sanders and Rep. Ro Khanna supported it.

The union says it will seek a billionaire tax again in 2028 if state leaders do not better support the public health sector. The Los Angeles Times reports Sanders and Khanna are pushing a federal tax on billionaires.

Key figures
  • 52.8%voters who rejected Proposition 40New York Post
  • 47.2%voters who supported itNew York Post
  • more than $333 millionraised by Building a Better California, the committee fighting the tax, per APThe Seattle Times
  • around $100 billionrevenue the tax would have generated, per SEIU-UHWNew York Post
  • $38.9 billionpossible net loss to the state, per Stanford economists' paperReason

Three sides of the story

17Liberal7Center8Conservative

32 news outlets reported this

Tap a color or swipe sideways to switch sides.

Liberal17 outlets

Billionaire money, split Democrats, and what defeat means nationally

Business Insider opens on the billionaires' win: California's 200-plus billionaires are "officially in the clear." It tracks the donors, noting Brin gave more than $100 million per CalMatters, and quotes Nvidia's Jensen Huang saying "I'm perfectly fine with it." The Guardian calls the campaign the most expensive in state history, puts opposition spending near $425m, and says the result "could hamper nationwide momentum" on taxing the ultra-wealthy.

CBS News, which projects the outcome, centers on how the measure split Democratic allies. Newsom and Katie Porter opposed it, while the state party and unions backed it. It also sets one study's $30 billion estimate against the $100 billion backers cited.

The Los Angeles Times headlines concern for the economy, cites the AP's roughly 53% to 47% split and quotes SEIU-UHW's Suzanne Jimenez on "billionaire-funded propaganda."

Center7 outlets

A long, expensive fight ends in rejection

BBC News opens with its headline, "Californians reject wealth tax for billionaires," and notes the projection took nearly a week of counting after the election. It quotes union head Dave Regan saying the billionaires' efforts created "a lot of confusion," and his pledge to seek the tax again in 2028. The Seattle Times, running an AP report, calls the result a win for Democratic leaders such as Newsom, who is deciding on a 2028 presidential run.

It quotes the opposing coalition's "reckless experiment" statement. Reason reports 52.8% against, citing The New York Times, and adds October polls, the Legislative Analyst's Office projection of "tens of billions of dollars," and the Stanford paper's possible $38.9 billion net loss. The Journal's headline marks an end to "a heated and expensive fight" over a possible first modern wealth levy for the nation.

Conservative8 outlets

A setback for the progressive wealth-tax push

The New York Post calls the result a "setback for progressive agenda" and gives the picture. San Francisco (56.2%) and Los Angeles (55%) were in favor, while Orange County (59.3%) and San Diego County (54.3%) voted no. It says Newsom backed Proposition 42 and cites Forbes for Brin spending nearly $102 million.

The Washington Examiner says the failure is "dashing liberal dreams." It describes the measure as a trial balloon some on the Left saw for a national wealth tax, and cites six Nobel-winning economists' letter. It also cites a Stanford working paper finding revenue estimates "grossly oversold."

Just the News reports the AP's call on Monday night, gives nearly six million votes against and 5.28 million for, and notes that members of both parties opposed it. The Washington Times says voters rejected a "one-time" wealth tax.

Where outlets disagree
Money and daily life

Business Insider reports backers pitched the tax as a way to help cover looming federal cuts to Medi-Cal, the state's program. SEIU-UHW's Suzanne Jimenez warns of reduced hospital services and lost access to care, saying "Californians will see for themselves what was at stake." The Los Angeles Times writes that lawmakers seem unlikely to find a way to cover an estimated $100 billion in federal healthcare cuts.

All sources: 40 articles from 32 outlets

Liberal (20)

Center (11)

Conservative (9)

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Ballot measure

A law or constitutional change that voters approve or reject directly at the polls, alongside the candidates. Names vary by state: proposition, initiative, referendum, amendment.

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Midterm elections

US elections halfway through a president's four-year term. The whole House, a third of the Senate and many governors are elected. In 2026 Election Day was November 3.

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Wall Street

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Medicaid

Public health coverage for people with low incomes, paid by the federal government and the states. The rules differ by state.

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